French TV channel beIN Sport, which shares its president, Nasser Al-Khelaifi, with the club, broke the news before official confirmation quickly followed via PSG's official website that Leonardo, 43, will step down following the close of the transfer window on September 2.

"The club's board regret the decision, but respect it," a statement read. "It would like to express its thanks for the remarkable work accomplished in constructing in Paris a centre-stage European club. It wishes for him to continue his brilliant career with success."

Appointed in the summer of 2011 when Qatar Sports Investments took charge at the Parc des Princes, the former Inter Milan and AC Milan boss orchestrated a spending spree which eventually led to the club picking up the Ligue 1 title last season under Carlo Ancelotti, a coach Leonardo had worked hard to bring to the club in January 2012.